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Investors complain over 'biased' reporting on RI

| Source: JP

Investors complain over 'biased' reporting on RI

A'an Suryana, The Jakarta Post, Jakarta

Several investors have complained about the biased coverage on
Indonesia by both local and foreign media, saying that the
tarnished image of the country caused by the negative reporting
had contributed to the downturn in investments here.

"Indonesia's tarnished image, as has been portrayed by the
media, has damaged the business confidence. No wonder Indonesia
has hardly rated as a place to do business in the last few
years," John Arnold, chairman of the British Chamber of
Commerce's mission in Indonesia, said during the "Indonesia's
Image: Media Myth and Reality" seminar on Thursday.

Arnold said that the biased reporting started in 1997
following the multidimensional crisis that hit the country. Since
then, Indonesia has been perceived as a country struggling to
find itself, rife with ethnic and religious tensions and
conflicts, and the collapse of law enforcement and widespread
breaking of contracts with impunity.

"None of us could convincingly argue that there is no basis
for these images," he said.

Arnold said that the media had helped create and establish the
image, not because of misreporting, but more because of selective
reporting.

He called on the media to be more balanced in reporting events
in Indonesia and not to focus only on security, scandalous and
political issues. The coverage of these issues could bring losses
to the country's investment climate.

Citing an example, Arnold pointed to the Tangguh LNG project
being developed by BP Indonesia in Papua, about which the media
has focussed on the risk of environmental damage and the failure
to secure the first major sales contract with southern China.

"There is little (coverage) on the potential economic benefits
that will flow into Papua and Indonesia as a whole," he said.

Executive director of Goldman Sachs-Singapore Gita Wirjawan
shared Arnold's view, saying that the media had created a
perception of Indonesia as identical with uncertainty and
disarray since several years ago.

This would surely impact foreign confidence in Indonesia, as
investors would still refer to the biased reporting because of
the existing uncertainty in the country.

"Since we are entering the pre-election cycle, there is a
relatively high degree of uncertainties, including the broader
issue of the capability of Jamaah Islamiyah (JI) terrorism cells
in Indonesia. These uncertainties seem to have slowed down the
return of capital flights and put additional business investments
on hold," Gita said in the seminar.

Arnold urged the government to learn how to build a good
relationship with the media in order to create a better image for
investment.

"When a potentially embarrassing news event breaks, which will
negatively impact the government, there is often a tendency to
react with hastily staged press conferences. Platitudes,
unconvincing statements or denials will be communicated. Then
life goes on," said Arnold.

Another speaker at the seminar, Damien Kingsbury, a lecturer
at Deakin University in Australia, acknowledged that Indonesia
was vulnerable to the unbalanced coverage.

However, he defended the media, saying that the biased
reporting was actually part of the media's efforts to do good for
society as a whole.

"The media has a duty as a watchdog, in alerting the public to
current problems and calling on the government and other relevant
institutions to be accountable," he said.

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